balance of trade — The difference between merchandise exports and imports.
A positive (negative) difference indicates a trade surplus (deficit).

Balassa-Samuelson effect — The tendency for prices to rise rapidly in fastgrowing economies where the rapid increase of productivity in the tradablegoods sector induces increases in the demand for the products of the service
sector.

Bank rate — See central bank discount rate.

beggar-thy-neighbor devaluation — An exchange rate devaluation by one
country that, by compressing its demand for imports, leaves its trading partners worse off.

bimetallic standard or bimetallism — A commodity-money standard under
which the authorities grant legal-tender status to coins minted with two metals (say, gold and silver). See also monometallic standard.

Brady Plan — Named after U.S. treasury secretary Nicholas Brady, this plan
sought to normalize conditions in international financial markets following
the debt crisis of the 1980s. Commercial banks were encouraged to issue
securities backed by nonperforming loans to developing countries as a way
of cleansing their balance sheets. The market for “Brady bonds” provided
the platform for the resumption of lending to developing countries through
the bond market in the 1990s.

brassage — The fee paid for coining precious metal under a commodity money
standard. It covered the expenses of the mint master and allowed him a
modest profit.

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